Template-Type: ReDIF-Article 1.0 Author-Name: Micha Bosler Author-X-Name-First: Micha Author-X-Name-Last: Bosler Title: Incumbent firms offering digital services: insights and lessons learned from the automotive industry Abstract: Regarding the current transformation within the automotive industry, connectivity is one of the major drivers. Meanwhile, incumbent OEMs have several years of experience in offering connected car services. Based on a multiple-case study of four incumbent automobile manufacturers, this article addresses the research question of what challenges occurred due to the introduction of digital services and how the firms responded to them. The findings are linked to one main explanatory approach. Due to their lack of experience in digital business, the OEMs tended to apply established principles from their core business. However, most of these dominant logics are unsuitable in the digital field, which explains the difficulties that arise and leads to important lessons learned. Agile methods, customer centricity, updatable platforms, more in-house development and value co-creation with partners were identified as changes in the way how the incumbent firms deploy and allocate resources. Journal: Int. J. of Automotive Technology and Management Pages: 365-389 Issue: 4 Volume: 21 Year: 2021 Keywords: connected car services; digital services; incumbent firms; connectivity; automotive industry; digital transformation. File-URL: http://www.inderscience.com/link.php?id=119401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:4:p:365-389 Template-Type: ReDIF-Article 1.0 Author-Name: Stefan Sommer Author-X-Name-First: Stefan Author-X-Name-Last: Sommer Author-Name: Heike Proff Author-X-Name-First: Heike Author-X-Name-Last: Proff Author-Name: Harald Proff Author-X-Name-First: Harald Author-X-Name-Last: Proff Title: Digital transformation in the global automotive industry Abstract: In the automotive industry, digitalisation is causing discontinuous and thus often disruptive changes that are driving changes in companies' traditional processes, products/services and business models. However, research has not yet adequately examined the extent of the digital transformation in the automotive industry and options for accelerating it. In this study, an index of digital maturity is theoretically deduced to measure digitalisation in order to examine 167 global automotive companies. The results indicate that digital transformation is primarily a strategic transformation. However, it frequently fails to make proper progress because larger companies have complex structures, often assembled through cooperative ventures and acquisitions, and organisational units test isolated, mostly unconnected pilot applications of digital technologies in processes, products/services and business models at many points in the organisation. Therefore, responding to digital disruption in the automotive industry is a comprehensive transformational task. Journal: Int. J. of Automotive Technology and Management Pages: 295-321 Issue: 4 Volume: 21 Year: 2021 Keywords: digital transformation; digitalisation; digital technologies; maturity index; automotive industry; dynamic capabilities; ordinary capabilities. File-URL: http://www.inderscience.com/link.php?id=119402 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:4:p:295-321 Template-Type: ReDIF-Article 1.0 Author-Name: Gerlane Gonçalves De Andrade Author-X-Name-First: Gerlane Gonçalves De Author-X-Name-Last: Andrade Author-Name: Admir Antonio Betarelli Junior Author-X-Name-First: Admir Antonio Betarelli Author-X-Name-Last: Junior Author-Name: Carlos Alberto Gonçalves Da Silva Author-X-Name-First: Carlos Alberto Gonçalves Da Author-X-Name-Last: Silva Author-Name: Weslem Rodrigues Faria Author-X-Name-First: Weslem Rodrigues Author-X-Name-Last: Faria Title: Business cycle and uncertainties: evaluating the behaviour of the automotive industry in relation to the COVID-19 period in Brazil Abstract: Drawing on autoregressive vector (VAR) model, this paper analyses supply and demand of automobiles and light commercial vehicles in Brazil from January 2012 to February 2020. Then, it points out how the automotive activity in the country responds to shocks of political proposals or unexpected shocks. The results on the short-term forecast suggest that credit, income, price, and tax influence the business cycles of the industry and returns to a stationary trend over a period of five months. Therefore, the analysis suggests that the automotive activity has a capacity for quick recovery in face of an eventual adverse shock, such as COVID-19 outbreak. This convergence time can be shortened by credit and tax reduction policies, as well as the new automation and electrification technologies in the automotive industry. Journal: Int. J. of Automotive Technology and Management Pages: 273-294 Issue: 4 Volume: 21 Year: 2021 Keywords: business cycle; COVID-19; automotive industry; VAR model. File-URL: http://www.inderscience.com/link.php?id=119403 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:4:p:273-294 Template-Type: ReDIF-Article 1.0 Author-Name: Marc Alochet Author-X-Name-First: Marc Author-X-Name-Last: Alochet Author-Name: Christophe Midler Author-X-Name-First: Christophe Author-X-Name-Last: Midler Author-Name: Yongyi Shou Author-X-Name-First: Yongyi Author-X-Name-Last: Shou Author-Name: Xieshu Wang Author-X-Name-First: Xieshu Author-X-Name-Last: Wang Title: The road to autonomous mobility services: who drives the transition, where, and how? Abstract: Due to many technological and non-technological factors the automotive sector is currently initiating a transition towards innovative mobility services using autonomous vehicles. In this paper, we ask where this transition might lead, which actors are capable of carrying it out, and what role they might play in its emergence. Drawing on the socio-technical transition paradigm and multi-level perspective framework, we use a mobility service characterisation framework to explore this question through an empirical study of ten emblematic mobility initiatives in the USA, Europe, and China. Our results reveal a variety of service designs that we characterise through three different ideal types: <i>mobility service added to product</i>, <i>robotaxi</i>, and <i>territorialised open mobility platform</i>. Our contribution is two-fold: we characterise the respective leverage of incumbents and newcomers, and we highlight the roles of automakers, mobility operators, technology companies, construction companies, and public authorities in initiating this transition. Journal: Int. J. of Automotive Technology and Management Pages: 343-364 Issue: 4 Volume: 21 Year: 2021 Keywords: sociotechnical transition; multi-level perspective; MLP; mobility service; autonomous vehicle; robotaxi; mobility platform. File-URL: http://www.inderscience.com/link.php?id=119404 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:4:p:343-364 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Klier Author-X-Name-First: Thomas Author-X-Name-Last: Klier Author-Name: James M. Rubenstein Author-X-Name-First: James M. Author-X-Name-Last: Rubenstein Title: ICE age geography: powertrain sourcing in Europe and North America Abstract: We describe the location within Europe and North America of motor vehicle powertrain sourcing. A powertrain is comprised of the vehicle engine and transmission. In terms of the organisation of production, powertrain production typically is vertically integrated into a carmaker's operations. At the industry level, we find the footprint of powertrain sourcing to be remarkably similar in Europe and North America. A key feature driving the industry's geography is that powertrain plants in both Europe and North America co-locate with vehicle assembly plants, yet produce more units per year than vehicle assembly plants. For a specific vehicle producer, the geography of powertrain sourcing largely depends on the scale of its operations. In both regions, the plants producing engines and transmissions are more clustered than those producing vehicles. This clustering highlights a distinctive regional distribution of production at a time when the transition to electric vehicles is starting to take hold. Journal: Int. J. of Automotive Technology and Management Pages: 322-342 Issue: 4 Volume: 21 Year: 2021 Keywords: motor vehicles; powertrain; economies of scale; vertical integration; Europe; North America. File-URL: http://www.inderscience.com/link.php?id=119405 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:4:p:322-342 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Schröder Author-X-Name-First: Martin Author-X-Name-Last: Schröder Title: Automotive value chain development in Vietnam: pathways between a new domestic carmaker, supplier development, and differing production systems Abstract: After opening the Vietnamese economy through free trade agreements, upgrading domestic vehicle assembly towards more localised production requires development of the domestic supplier industry. Based on qualitative case studies which combined interviews with a questionnaire, this paper analyses carmaker and supplier strategies towards participation in the automotive value chain. Literature on global value chains commonly finds that suppliers must comply with customer requirements in order to become part of said chains. While it is found that compliance is indeed required, it is emphasised that the domain of compliance varies significantly between customers, which creates issues for local suppliers. Further, it is argued that different requirements are rooted in differing production systems. Journal: Int. J. of Automotive Technology and Management Pages: 200-227 Issue: 3 Volume: 21 Year: 2021 Keywords: Vietnam; global value chain; automotive industry; regional economic integration; supplier development; localisation; production system. File-URL: http://www.inderscience.com/link.php?id=116603 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:3:p:200-227 Template-Type: ReDIF-Article 1.0 Author-Name: Viktor Werner Author-X-Name-First: Viktor Author-X-Name-Last: Werner Author-Name: Ksenia Onufrey Author-X-Name-First: Ksenia Author-X-Name-Last: Onufrey Author-Name: Thomas Magnusson Author-X-Name-First: Thomas Author-X-Name-Last: Magnusson Title: From protection to selective exposure: commercial demonstrations as steppingstones for upscaled technology diffusion Abstract: Examining how actively constructed processes of demand articulation can enable upscaled technology diffusion, this paper introduces a distinction between pre-commercial and commercial demonstrations. The paper argues that these two forms of demonstration play different roles in the adoption of innovative technologies. Whereas pre-commercial demonstrations are initiated to facilitate entry into niche markets, commercial demonstrations are devised to ease entry to mass markets. The paper presents a comparative case analysis of commercial demonstration projects featuring electrified heavy trucks in urban applications. The analysis focuses on the relation between the technologies and the selection environments they operate in, showing how stakeholders actively shape selection environments in commercial demonstrations. The analysis further shows how network relationships and lessons learned empower stakeholders to articulate forceful demands on institutional changes that promote an upscaled technology diffusion. Journal: Int. J. of Automotive Technology and Management Pages: 250-272 Issue: 3 Volume: 21 Year: 2021 Keywords: demand articulation; electric vehicle; market niche; demonstration; technology diffusion; upscaled diffusion. File-URL: http://www.inderscience.com/link.php?id=116604 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:3:p:250-272 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Krzywdzinski Author-X-Name-First: Martin Author-X-Name-Last: Krzywdzinski Title: Automation approaches in the automotive industry: Germany, Japan and the USA in comparison Abstract: Current analyses of technological change take it for granted that we are living in a time of rapidly increasing automation. But is the thesis of accelerating automation correct? This study develops a historical assessment of the development of process technologies in the automotive sector from the early 1990s until 2018. The focus is on three central automobile manufacturing countries: Germany, Japan and the USA. The two main questions are: 1) What approaches to automation are being pursued in the automotive industry? 2) How do automation approaches of German, Japanese and US companies differ? The major goal of the analysis is to test the hypothesis of an accelerated automation (and potentially disruptive technological change). The study is based on a combination of qualitative and quantitative data. The qualitative analysis consists of 439 articles on automation from automotive industry print outlets. The study also uses the figures provided by the International Federation of Robotics on the development of robot installations. Journal: Int. J. of Automotive Technology and Management Pages: 180-199 Issue: 3 Volume: 21 Year: 2021 Keywords: technological change; automation; digitalisation; industry 4.0; digital factory; robots; production systems; automotive industry; Germany; Japan; USA. File-URL: http://www.inderscience.com/link.php?id=116605 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:3:p:180-199 Template-Type: ReDIF-Article 1.0 Author-Name: Takefumi Mokudai Author-X-Name-First: Takefumi Author-X-Name-Last: Mokudai Author-Name: Martin Schröder Author-X-Name-First: Martin Author-X-Name-Last: Schröder Author-Name: Marvin Müller Author-X-Name-First: Marvin Author-X-Name-Last: Müller Author-Name: Carsten Schaede Author-X-Name-First: Carsten Author-X-Name-Last: Schaede Author-Name: Hajo Holst Author-X-Name-First: Hajo Author-X-Name-Last: Holst Author-Name: Robert Sinopoli Author-X-Name-First: Robert Author-X-Name-Last: Sinopoli Author-Name: Ulrich Jürgens Author-X-Name-First: Ulrich Author-X-Name-Last: Jürgens Author-Name: Gary Herrigel Author-X-Name-First: Gary Author-X-Name-Last: Herrigel Author-Name: Katsuki Aoki Author-X-Name-First: Katsuki Author-X-Name-Last: Aoki Title: Digital technologies as lean augmentation: a preliminary study of Japanese automotive manufacturers Abstract: This paper explores how Japanese automotive manufacturers, whose production systems are characterised by the lean principle, address digital transformation. We conducted case studies of seven Japanese car makers and suppliers to investigate the interplay between lean production and digitalisation. We found that the firms selectively adopted digital technologies to enhance the existing lean production system. We labelled this type of digitalisation 'lean augmentation'. Further, we developed theoretical hypotheses regarding the potential of digitalisation to limit kaizen, the roles of human involvement and organisational coordination in digitalised manufacturing, and the potential risk of lean augmentation being caught by what we term the 'lean trap'. Journal: Int. J. of Automotive Technology and Management Pages: 228-249 Issue: 3 Volume: 21 Year: 2021 Keywords: lean production; digital technologies; digitalisation; industry 4.0; operations; kaizen; human resource development; lean augmentation; lean trap; multiple-case method; Japanese automotive industry. File-URL: http://www.inderscience.com/link.php?id=116607 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:3:p:228-249 Template-Type: ReDIF-Article 1.0 Author-Name: Tommaso Pardi Author-X-Name-First: Tommaso Author-X-Name-Last: Pardi Title: Prospects and contradictions of the electrification of the European automotive industry: the role of European Union policy Abstract: The article analyses the role that the EU regulatory framework for the reduction of CO<SUB align="right"><SMALL>2</SMALL></SUB> emissions in the transport sector has played during the last twenty years in moving the industry away from what it was supposed to do: reduce weight, mass and size of the cars sold to make them less polluting. It shows that the current race towards electrification can be seen as the result of this paradox. It argues that under the ongoing upmarket drift in new car sales the social, economic and political costs of electrification increase, while its environmental benefits decrease. Journal: Int. J. of Automotive Technology and Management Pages: 162-179 Issue: 3 Volume: 21 Year: 2021 Keywords: electric vehicle; environmental policy; European Union; automotive industry; Gerpisa; Dieselgate. File-URL: http://www.inderscience.com/link.php?id=116620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:3:p:162-179 Template-Type: ReDIF-Article 1.0 Author-Name: Fabio Antonialli Author-X-Name-First: Fabio Author-X-Name-Last: Antonialli Title: Autonomous shuttles for collective transport: a worldwide benchmark Abstract: The present study aimed at performing a comprehensive benchmark on experimentations with autonomous shuttles for collective transport. Data was collected online on both academic and grey literature yielding a research corpus of 176 experimentations. Results show a European lead on both the number of experimentations and manufacturers. The majority of the deployments were aimed towards public transportation being short to mid-term trials, mainly offered free of charge to users. Regular-line transport was the prevailing operational mode adopted, meanwhile, on-demand services were present but incipient, mainly due to legal barriers as well as technological and infrastructural constraints. Eight main typologies of uses able to fulfil both private and public transport offerings were identified, being either focused on solving first- and last-mile issues or microtransit commute. At last, the main common stakeholders were identified, as well as how different forms of value are created and distributed among them. Journal: Int. J. of Automotive Technology and Management Pages: 5-28 Issue: 1/2 Volume: 21 Year: 2021 Keywords: autonomous shuttles; urban mobility; collective transport; business models; typologies of use; autonomous vehicles. File-URL: http://www.inderscience.com/link.php?id=113349 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:1/2:p:5-28 Template-Type: ReDIF-Article 1.0 Author-Name: João Paulo Nascimento Da Silva Author-X-Name-First: João Paulo Nascimento Da Author-X-Name-Last: Silva Author-Name: Kelly Carvalho Vieira Author-X-Name-First: Kelly Carvalho Author-X-Name-Last: Vieira Author-Name: Joel Yutaka Sugano Author-X-Name-First: Joel Yutaka Author-X-Name-Last: Sugano Author-Name: Gabriel Pedrosa Author-X-Name-First: Gabriel Author-X-Name-Last: Pedrosa Author-Name: Cledison Carlos De Oliveira Author-X-Name-First: Cledison Carlos De Author-X-Name-Last: Oliveira Title: Factors of diffusion of innovations: analysis of the literature of autonomous vehicles Abstract: The technology of autonomous vehicles (AV) has a strong potential of changing the existing market paradigms and carry new challenges. This study addresses the diffusion of AV technology using the Rogers' (1995) innovations diffusion model in order to better understand the factors that can trigger a higher adoption rate and increase diffusion. The results indicate that research on this topic is still scarce and strongly dispersed, thus not yet prepared to form the defining characteristics of the innovations diffusion model. At the end of this article, a theoretical framework and future research venues are offered. Journal: Int. J. of Automotive Technology and Management Pages: 29-52 Issue: 1/2 Volume: 21 Year: 2021 Keywords: diffusion of technology; diffusion of innovation; diffusion factor; diffusion barriers; social barrier; Roger's model; technology adoption; autonomous vehicles; terrestrial mobility; mobility as a service; MaaS. File-URL: http://www.inderscience.com/link.php?id=113350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:1/2:p:29-52 Template-Type: ReDIF-Article 1.0 Author-Name: Bruna Habib Cavazza Author-X-Name-First: Bruna Habib Author-X-Name-Last: Cavazza Author-Name: Thais Assis De Souza Author-X-Name-First: Thais Assis De Author-X-Name-Last: Souza Author-Name: Rodrigo Marçal Gandia Author-X-Name-First: Rodrigo Marçal Author-X-Name-Last: Gandia Author-Name: André Luiz Zambalde Author-X-Name-First: André Luiz Author-X-Name-Last: Zambalde Author-Name: Isabelle Nicolaï Author-X-Name-First: Isabelle Author-X-Name-Last: Nicolaï Title: Innovation radar for disruptive technology insertion: the case of autonomous vehicles in Brazil and France Abstract: This paper seeks to identify the critical success factors, to propose a theoretical model of the innovation radar for the insertion of autonomous vehicles as a product-service system in a country, and to map and discuss the radar in the context of Brazil and France. Fundamentally, it seeks to address the gap between the development of AVs, the differences between two national contexts, and the lack of specific knowledge about how to manage disruptive innovation in countries. From the results, the intent is to clear diagnosis about the innovation, allowing the formulation of guidelines and actions for the capacity development of a country. The results obtained in Brazil and France were crossed with official data and statistics as a way to corroborate the use of the innovation radar as a tool. Journal: Int. J. of Automotive Technology and Management Pages: 53-74 Issue: 1/2 Volume: 21 Year: 2021 Keywords: innovation radar; Brazil; France; critical success factors; autonomous vehicles; product service system; trends in mobility; technology and innovation; social and political environment; consumer and market; infrastructure and patterns. File-URL: http://www.inderscience.com/link.php?id=113351 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:1/2:p:53-74 Template-Type: ReDIF-Article 1.0 Author-Name: Timo Günthner Author-X-Name-First: Timo Author-X-Name-Last: Günthner Author-Name: Heike Proff Author-X-Name-First: Heike Author-X-Name-Last: Proff Author-Name: Josip Jovic Author-X-Name-First: Josip Author-X-Name-Last: Jovic Author-Name: Lukas Zeymer Author-X-Name-First: Lukas Author-X-Name-Last: Zeymer Title: Tapping into market opportunities in aging societies - the example of advanced driver assistance systems in the transition to autonomous driving Abstract: The stagnation in car sales in the triad markets is forcing automotive companies to seek new market opportunities, e.g., in the aging society. The number of older drivers is growing, and they can afford safety- and comfort-related products which allow them to drive into older age despite physical and psychological restrictions. Therefore, potentials for advanced driver assistance systems for elderly drivers are likely to exist in these markets. By determining older drivers' willingness to pay for advanced driver assistance systems in the transition to autonomous driving, market opportunities can be identified. This study proves that there are market potentials for these systems in the 'silver market'. However, there is no simple linear relationship between age and willingness to pay. A more thorough examination is therefore needed. Journal: Int. J. of Automotive Technology and Management Pages: 75-98 Issue: 1/2 Volume: 21 Year: 2021 Keywords: advanced driver assistance systems; autonomous driving; willingness to pay; silver market; older drivers; aging societies. File-URL: http://www.inderscience.com/link.php?id=113352 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:1/2:p:75-98 Template-Type: ReDIF-Article 1.0 Author-Name: Sylvie Mira Bonnardel Author-X-Name-First: Sylvie Mira Author-X-Name-Last: Bonnardel Title: Robomobility for collective transport: a prospective user centric view Abstract: Public transport may be undergoing an important transformation following the arrival of autonomous vehicles. Researchers, think thanks as well as consulting companies have designed many scenarios based on trend analysis of three main dimensions: technology, regulations and uses. The user level of acceptance for autonomous driving represents a key point for any prospective study. Therefore, this article aimed at proposing a use case daily scenario by focusing on the user. We analyse more specifically the implementation of autonomous vehicles for micro transit and commuting by studying user opinions via two field surveys. Discussion with users help us to build and test a use cases scenario and to picture personas whose characters will allow decision makers to better figure out the conditions to leverage the citizens level of acceptance for robomobility. Journal: Int. J. of Automotive Technology and Management Pages: 99-120 Issue: 1/2 Volume: 21 Year: 2021 Keywords: autonomous vehicle; public transport transformation; use cases; scenario. File-URL: http://www.inderscience.com/link.php?id=113353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:1/2:p:99-120 Template-Type: ReDIF-Article 1.0 Author-Name: Boy Lüthje Author-X-Name-First: Boy Author-X-Name-Last: Lüthje Title: Going digital, going green: changing production networks in the automotive industry in China Abstract: The article analyses the changes in production and innovation networks in the automobile industry in China resulting from the transition to new-energy vehicles and digital driving technologies. This transformation is seen as a fundamental break with the present neo-Fordist growth model in the car industry and a rise of new forms of network-based mass production, comparable to the IT industry since the 1990s. The article traces the complex politics of this transition embedded in different modes of regulation in the Chinese automotive sector, its impact on work and regimes of production, and the perspective of a broad-ranging 'Foxconnisation' of car manufacturing. Journal: Int. J. of Automotive Technology and Management Pages: 121-136 Issue: 1/2 Volume: 21 Year: 2021 Keywords: China; auto industry; new-energy vehicles; value chains; production models; work; labour relations. File-URL: http://www.inderscience.com/link.php?id=113355 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:1/2:p:121-136 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Borer Author-X-Name-First: Daniel Author-X-Name-Last: Borer Author-Name: Kock Lim Tan Author-X-Name-First: Kock Lim Author-X-Name-Last: Tan Author-Name: Brian Chua Tatt Shen Author-X-Name-First: Brian Chua Tatt Author-X-Name-Last: Shen Title: Estimating the welfare loss due to vehicle tariffs in Malaysia Abstract: The Malaysian Government initiated domestic automobile production in 1985, paired with hefty tariffs on imported vehicles to protect the growing industry, using the infant industry argument as underlying. To gain empirical knowledge on the effectiveness of the infant industry argument for the automobile industry, the cases of Japan, South Korea and Spain are briefly analysed. The findings suggest that the Malaysian Government has failed to implement the infant industry type policies successfully. Additionally, the welfare cost of protecting the Malaysian vehicle industry is calculated using a Harberger triangle welfare loss analysis. The welfare loss is estimated for the year 2017 at MYR 11.3 b (US$2.8 b). It is suggested that the benefits of keeping the protectionist measures are too small to justify the costs. To close the article, policy recommendations are presented to reduce the welfare loss by gradually opening the sector up to international competition. Journal: Int. J. of Automotive Technology and Management Pages: 137-160 Issue: 1/2 Volume: 21 Year: 2021 Keywords: empirical studies of trade; Malaysia; Spain; Japan; automobile industry; tariffs; welfare loss; Harberger triangle; infant industry. File-URL: http://www.inderscience.com/link.php?id=113365 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijatma:v:21:y:2021:i:1/2:p:137-160